Correlation Between Loomis Sayles and Bbh Intermediate
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Bbh Intermediate at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Loomis Sayles and Bbh Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Institutional and Bbh Intermediate Municipal, you can compare the effects of market volatilities on Loomis Sayles and Bbh Intermediate and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Loomis Sayles with a short position of Bbh Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Bbh Intermediate.
Diversification Opportunities for Loomis Sayles and Bbh Intermediate
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Loomis and Bbh is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Institutional and Bbh Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Intermediate Mun and Loomis Sayles is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Loomis Sayles Institutional are associated (or correlated) with Bbh Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Intermediate Mun has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Bbh Intermediate go up and down completely randomly.
Pair Corralation between Loomis Sayles and Bbh Intermediate
Assuming the 90 days horizon Loomis Sayles is expected to generate 1.16 times less return on investment than Bbh Intermediate. In addition to that, Loomis Sayles is 1.11 times more volatile than Bbh Intermediate Municipal. It trades about 0.32 of its total potential returns per unit of risk. Bbh Intermediate Municipal is currently generating about 0.41 per unit of volatility. If you would invest 1,026 in Bbh Intermediate Municipal on September 13, 2024 and sell it today you would earn a total of 12.00 from holding Bbh Intermediate Municipal or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Institutional vs. Bbh Intermediate Municipal
Performance |
| Timeline |
| Loomis Sayles Instit |
| Bbh Intermediate Mun |
Loomis Sayles and Bbh Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Bbh Intermediate
The main advantage of trading using opposite Loomis Sayles and Bbh Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Bbh Intermediate can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bbh Intermediate will offset losses from the drop in Bbh Intermediate's long position.| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond |
| Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Partner Fund | Bbh Intermediate vs. Bbh Intermediate Municipal |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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